Hormuz Tensions Persist as Oman Mediation Stalls

Oil flows through the Strait of Hormuz rose during the 60-day US-Iran MoU but remained well below pre-war levels, totaling about 374 million barrels (roughly 6.1 million bpd) before the agreement expired without a lasting deal. Attacks on commercial ships in the strait persisted, including a fatality on a Liberia-flagged vessel, underscoring ongoing risks to global energy supplies. The United States has shifted from imminent military escalation toward broader economic measures, with President Trump signaling extensive sanctions on Iran. Talks involving Oman on a new Hormuz routing mechanism have stalled, complicating any potential transit arrangements. In parallel, regional diplomacy continued, with Egypt and Oman stressing the need to keep Hormuz open and supporting a joint Iranian-Omani declaration to reopen the strait. The oil market remains vulnerable to geopolitical developments, with prices rallying on supply-disruption fears and ongoing diplomacy and sanctions shaping the outlook.